A ruling from the U.S. Department of Commerce against Canadian-based airliner Bombardier issued Sept. 26 has raised concerns about American protectionism.

The ruling sparked harsh language from politicians in the UK, where the jets in question are manufactured, and Canada suggesting a coming aerospace trade war. The Commerce Department’s decision to levy a 220% tariff on Bombardier CS100 commercial jets clearly pits Trump’s “America First” manifesto against global free trade.

The claims against Bombardier

The aerospace trade conflict began when U.S.-based Boeing filed a claim with the U.S. Department of Commerce against Bombardier. Boeing claimed that a $1 billion infusion of money from the Canadian government in 2015 allowed Bombardier to strike an agreement to provide its C-series commercial jets to Detroit-based Delta at rates that were well below the cost of producing the jets. In its claim, Boeing also cited a commitment of $181 million from the U.K. government and Northern Ireland Executive for a new factory in Belfast where the wings for the C-series jets are manufactured.

International trade regulations prohibit subsidies of any kinds from governments that give businesses an unfair advantage in the international market. With that in mind, Boeing asked the U.S. Department of Commerce for an 80% tariff to equalize the U.S. aerospace market.

“Subsidies enabled Bombardier to dump its product into the U.S. market, harming aerospace workers in the United States and throughout Boeing’s global supply chain,” Boeing said in a public statement regarding the dispute.

(The complaint) has everything to do with maintaining a level playing field and ensuring that aerospace companies abide by trade agreements.

The backlash against the U.S. Department of Commerce ruling

Government leaders in the U.K. and Canada, and representatives from Bombardier were quick to criticize the ruling from the U.S. Department of Commerce.

“The magnitude of the proposed duty is absurd and divorced from the reality about the financing of multibillion-dollar aircraft programs,” Bombardier said via a public statement regarding the ruling.

U.S. trade laws were never intended to be used in this manner, and Boeing is seeking to use a skewed process to stifle competition.

The United States does, in fact, have an Agreement on Trade in Civil Aircraft with 31 countries including the Canada and the U.K. That agreement, which has been in place since 1980, prohibits import duties on all civilian aircrafts.

Previously, British Prime Minister Teresa May had appealed to Trump to encourage Boeing to drop its suit. Following the ruling, U.K. Defense Secretary Michael Fallon warned Boeing that its claims against Bombardier could “jeopardize” its ability to obtain defense contracts with the U.K.

Canadian Prime Minister Justin Trudeau threatened to cut any ties between Boeing and the Canadian government in response to the ruling.

“Certainly, we won’t deal with a company that’s attacking us and attacking thousands of Canadian jobs,” Trudeau said.

Long-term implications of the aerospace trade conflict

The dispute over aerospace trade is far from over. The case between Boeing and Bombardier isn’t expected to be settled before next spring, when the U.S. Department of Commerce is expected to issue a final ruling on whether Bombardier’s government funding allowed the company to sell commercial airliners below cost, providing Bombardier with an unfair advantage that harmed Delta.

Regardless of the final ruling, the Boeing-Bombardier dispute has stirred up trade conflict and concerns over Trump’s aggressive “America First” policies. In addition to creating harsh words from government leaders in the U.K. and Canada, the complaint by Boeing and the subsequent tariff have called into question the future of trade deals with the United States, as well as the U.K.’s ability to strike a post-Brexit trade deal with the U.S.

What do you think this ruling means for the future of the aerospace industry and trade within Canada, the United States, the UK, and around the world?

The post Aerospace conflict raises issues on competition and trade appeared first on Trade Ready.

I started in the sports facility and sporting goods industry, where I held management positions that led to a position in retail sports management and leading training initiatives.

From there I was recruited to work for the Canadian Cancer Society. Some people find it an unusual leap to go from the competitive retail world to the not-for-profit sector.

However, I often find myself reminding folks that the methods and best practises are the same, and I enjoyed the challenge of working in a new sector.

Recruited into the global trade world

While at the Canadian Cancer Society, I was approached to join a company that was expanding in North America.

My career in international trade then began in inside sales at Cobham Tracking & Locating, a subsidiary of the larger Cobham group, which is a global player in aerospace, defence, and electronics.

I worked my way up to an account manager position for marine, aerospace and defence systems, serving over 900 clients and distributors worldwide. Many of these distributors, particularly those located in England, Germany, Japan, Singapore and India, have become lifelong friends.

The sectors I serviced during this time ranged from oceanographic and marine technology, to oil and gas, aerospace, and defence.

This meant I worked with military and academic research facilities worldwide managing high-level logistics processes, including International Traffic in Arms Regulations (ITAR), Controlled Goods Regulations, Global Affairs Canada, and the U.S. Department of State.

This position required an in-depth knowledge of contract law and government regulations as they relate to commercial and contract functions. I gained experience in drafting and negotiating long-term supply and purchase agreements, as well as distribution agreements, collaboration/teaming agreements and non-disclosure agreements.

One of my biggest responsibilities was identifying key areas in contract terms supplied by other parties that would represent a significant risk to the company.

Getting hooked on FITTskills

During this time, I became aware of the FITTskills program. Although I had learned a great deal in my position at Cobham, I felt there was still much more to learn about managing a global supply chain.

At that time, the first course available through FITT’s delivery partner Nova Scotia Business Inc. was Legal Aspects of International Trade.  After completing the first course, I was hooked! From there, I was determined to complete the remaining modules and become certified in international trade.

Taking FITTskills courses was such a rich learning opportunity.

The practical FITTskills content, knowledge and first-hand experiences of the instructor, and the interaction and sharing between my fellow participants was, and continues to be, beneficial.

The connections I made in the global trade community have been extremely valuable and I have stayed in touch with many of them over the years.

Striking out on my own with the help of some brilliant business leaders

Eventually my role changed, as some of the products were sold to another company. After following through and establishing the product line with the new ownership, I realized it was time for a change.

I decided to pursue a career in consulting.

I recognized that many companies had a great deal to offer in the export market, yet there was a reticence to move past the perceived safe and comfortable borders because of a gap in knowledge on how to access foreign markets and the very real fear of the unknown.

I began my new business as a sole proprietor, building my company and reputation through subcontracting services to Kisserup International Trade Roots Inc. The founder of Kisserup, Pernille Fischer Boulter, CITP|FIBP, has many years of experience in international business development.

She has assisted thousands of small, micro and medium-sized private sector companies, trade and industry associations, and government agencies in their pursuit of export development worldwide.

Pernille generously assists those who are new to business, particularly in international trade, and she also has been a FITTskills instructor for many years. Working with Pernille and her team solidified both my knowledge and reputation, while building my experience assisting entrepreneurs from a variety sectors and geographic locations.

I connected with Bonnie O’Toole, President of Market Pursuits Inc., during my time in the FITTskills program, when we partnered up on our international business plan project.

In 2013, I joined her at Market Pursuits, once again subcontracting services to help businesses select target markets, access funding, and cut costs. We specialized in business development, marketing and business plans, government and community relations, funding proposals, and productivity optimization.

She has an amazing reputation in the Atlantic business community, known for her wealth of knowledge and quick grasp of business process improvements. Bonnie’s mentorship was crucial in developing my ability to create and deliver quality training to my clients.

Both Pernille and Bonnie have been extremely generous and influential, as both colleagues and mentors.

Educating myself to empower others

I am a strong believer in lifelong education. I spent 24 years as a an elected school board member and have found myself naturally gravitating to leadership positions on a local, provincial and national basis in both my professional and volunteer activities.

I knew many individuals and businesses could expand the way mine had, and I knew I wanted to help enable others. This passion led me undertake training and skill-building to better deliver information to those of all generations and learning styles.

Subsequently, I have been able to grow through many professional development opportunities. I earned my CITP®|FIBP® accreditation in 2012, and completed my Masters of Project Management from St. Mary’s University in 2013.

I also have several workplace educator certificates through the Department of Labour and Advanced Education.

I make a special effort to attend and promote events supporting new entrepreneurs. I am also a guest lecturer at universities and other post-secondary institutions and have been asked to serve as an expert panelist for national organizations.

I’ve been fortunate to help a great number of organizations with my leadership coaching, team facilitation, training, and business development expertise. One milestone I’m quite proud of is that I’ve now done business development in over 30 countries.

A large part of this is teaching the world-renowned FITTskills training and partnering to deliver Going Global workshops here in Canada and beyond.

I also provide personal training with Corporate Class Inc., mentoring leaders, key management and up-and-comers through customized training that aligns academic and technical expertise with individual, professional potential.

My training activities provide a great deal of satisfaction to me professionally and personally.

I love breaking down seemingly complex situations into manageable pieces or steps for participants. It is that moment, when they make the connection and identify their strategy, which I find most gratifying.

Taking on a new business challenge as I go BEYOND

In September 2015, I changed my business structure, incorporating as BEYOND Ventures Group Business & Trade Development Inc. For me, BEYOND poses a new direction, challenge, and to some degree, risk.

My goal with BEYOND is to partner with organizations globally to provide our clients with a competitive advantage. Our team is a diverse pool of enthusiastic local and international consultants, each of whom have a specialized area of expertise, enabling our clients and partners to succeed beyond their expectations and beyond borders.

We are committed to the growth and development of small and medium-sized (SME) enterprises from a wide range of economic and industry sectors,  building capacity and increasing their global reach.

BEYOND has already proven to be a success, with targets exceeding plan in the first two quarters and committed work to carry us through until our year end. The growth has been organic and steady, leading to a shortage of what many business owners struggle to find as well – time.

Facing the demands of the business I love

International business is exciting, but never easy. Global business professionals are faced with the requirement for frequent travel, often hampered by inconsistent internet connectivity, and challenged by cultural differences, as well as the pressures of meeting deadlines in different time zones and schedules.

Fortunately, the world is getting smaller every day through technology such as teleconferencing, videoconferencing, email, and social media that allow us to interact daily on a global basis.

Even so, my work schedule can be challenging, since I am constantly working across time zones.  That means I am often up at very early hours connecting to the EU, and working late nights for my clients in Australia.

A particular concern is navigating time zones during the switch to and from daylight savings, and being aware of holiday observances within my clients’ markets.  Once, during a business trip to the EU, I forgot about the one-hour time difference between England and the Netherlands.

After leaving England, as I was about to land in the Netherlands, I realized my error. Thank goodness I booked a rental car with a Tom Tom, or I would never have made it on time to my meeting. As it was, I arrived with only five minutes to spare.

I have been fortunate to see so many of the beautiful people and places in the world.

Quite often, I will steal a few hours early in the morning after the final day of a trade mission to swim in the ocean, go for a walk, or find some way to build a memorable moment before heading home and on to the next challenge.

Most memorable to me are the people I have had the good fortune of working with. I am constantly in awe of their knowledge, skills and generosity.

I am looking to grow BEYOND, to partner with like-minded entrepreneurs and provide short and long-term employment to individuals, particularly recent graduates and student interns, to ensure we provide our talent with opportunities through experience.

My five year plan will have this solid foundation in place, enabling businesses in Canada and abroad reach their dreams….and beyond!

The post In the challenging world of global business, connections and education are the keys to success appeared first on Trade Ready.

Claude Gendron, CITP|FIBP is the Deputy Director of the Aerospace Team at Global Affairs Canada.

Three years after moving into the international trade world from a government position in international security, his efforts have already paid off in spectacular fashion and his career is on the rise.

Taking a hands-on approach to Canada’s aerospace industry

Before entering into international trade, Claude had already built quite an impressive resume, mainly with the Canadian government.

He spent six years working for Canadian Heritage and served as an analyst for the United Nations Development Programme. In that time he administered grants and programs related to women’s health initiatives for Health Canada and worked on several non-proliferation, global security partnership, and security threat reduction programs for Global Affairs Canada.

He also studied to earn a postgraduate diploma in management and a master’s degree in international management from HEC Montreal’s business school, and a business administration and management certificate from MIT’s prestigious Sloan School of Management.

When given the chance to transfer from his security role at Global Affairs Canada to a role in international trade, Claude found the new options open to him as a Trade Commissioner in the aerospace sector to be very appealing.

I was thrilled with the idea of assisting companies and businesses in expanding their business abroad.

“Although I had several degrees in management, my hands-on experience in working with industry was relatively limited.”

He also quickly found that he had a lot to learn, but that his colleagues were more than willing to share their experiences and help him understand the ins and outs of the complex aerospace industry.

“I had to learn about the dynamics at play in the aerospace industry, but also in each of its segments, namely commercial aviation, maintenance, repair and overhaul, and space.”

“I also had to learn about global value chains, foreign direct investment, the export control regime in Canada and the type of services Canadian companies are requesting from the Trade Commissioner Service, to support their international business development.”

“In terms of advice, speaking to my colleagues and partners was the starting point. Seeking advice from experts or seasoned trade commissioners in my Department helped me learn to handle simple and more complex queries in assisting Canadian clients.”

Making big connections and paving the way for Canada’s aerospace sector

Despite his early experience in trade, Claude was able to orchestrate some major projects and take on a great deal of responsibility in a short period of time.

He planned and executed the Trade Commissioner Service’s programs at both the prestigious biannual Farnborough Air Show in 2014 and the Paris Airshow in 2015, both of which had approximately 400 Canadians representing 125 Canadian companies in attendance.

He also contributed to the development of a B2B matchmaking program used by over two dozen Trade Commissioners at posts around the world to help commissioners meet with foreign delegations and foreign companies interested in investing in Canada.

Claude also contributed to the renewal of an MOU on promoting cooperation in the civil aviation industry between Canada and China in November 2014.

Along with helping others build stronger relationships in the aerospace sector, Claude has managed to secure some exciting clients of his own. One client has already been a great benefit to Canada’s aerospace sector and could continue to pay off in exponential fashion.

“A few months after I began my job as Trade Commissioner, I attended a trade event in Montreal where I was introduced to a Director of Procurement for a major aircraft manufacturer.”

My colleagues and I made a suggestion to this senior official to organize a series of conferences or a trade mission across Canada. We offered the Canadian Trade Commissioner Service and partners to organize these meetings for the benefit of the Canadian industry.

“This represented tremendous opportunities for Canadian suppliers in aerospace.”

“Today, this manufacturer not only has organized two conferences in Canada, but has also established a close relationship with my team and other federal departments. Frequent communications are taking place and have paved the way for great opportunities on the horizon for the Canadian aerospace industry.”

Furthering his global trade expertise through targeted training

2015 was a big year for Claude, as he completed several major career milestones.

Even with his impressive education, Claude wanted to continue to train and add to his skills and knowledge. As part of that effort, he completed his master’s in management from Harvard University, which he had started in 2010.

In 2015, Claude also took the FITTskills program, which he says has enhanced his credibility and expertise as a Trade Commissioner.

“I found the FITTskills training to be perfectly designed for my work at Global Affairs Canada. This training provides an excellent understanding of the role and responsibilities of an international trade expert.”

“It presents practical advice in a wide number of areas to help you better perform your duty and overcome challenges when dealing with international trade finance, supply chain management, market entry strategies, legal issues, etc.”

He found it so helpful in fact, that he’s recommended the FITTskills courses to many other professionals since completing them.

The training offered by FITT is well tailored to the needs of the global trade industry. I encourage all my colleagues, as well as International Trade Practitioners and Business Development officers in the private sector, to take this training as it really makes a difference.

After finishing his courses, Claude also successfully applied to become an elite Certified International Trade Professional (CITP®|FIBP®), and says having the designation has been a big advantage in his daily work at GAC, as it is widely recognized throughout his department and the private sector.

Claude was recently named Deputy Director of Global Affairs’ aerospace team, and thinks his FITTskills training and his designation will help him in the role.

“My supervisor gives a lot of credit to the FITTskills program as it is well recognized within the Trade Sectors at Global Affairs Canada. I have no doubt the CITP®|FIBP® designation will make a difference in my career.”

In November 18, 2015, Claude’s team and the aerospace trade commissioners were awarded the James C. Floyd Award by the Aerospace Industries Association of Canada (AIAC) for their important contributions to the promotion of Canadian aerospace interests in the global marketplace.

“The Trade Commissioner Service has proven to be a vital partner to the Canadian aerospace industry, helping companies to make the connections that they need to gain access to and do business in markets around the world,” said Jim Quick, President and CEO of the Aerospace Industries Association of Canada.

“Through their active participation in domestic and international trade shows, their support in coordinating aerospace industry trade missions for companies and industry delegations, and their partnership through initiatives such as embedding a Trade Commissioner in AIAC’s offices, the TCS has directly and significantly supported the growth of Canadian aerospace both at home and around the world.”

This was the first time that the Award, which recognizes exceptional contributions to the Canadian aerospace industry, has been given to a government entity.

With such a rapid upward trajectory, Claude’s trade career in the aerospace sector seems poised for continued excellence, and we look forward to see the heights he’ll rise to next.

The post Claude Gendron, CITP|FIBP – Deputy Director, Aerospace Team appeared first on Trade Ready.

The first three articles published in this series provided information on where to review U.S. opportunities, who the key players are, the rules of the road, and how to register to do business with the U.S. Government.

Now it’s time to focus on that flipside that opportunity so often presents – the challenges!

There are many obstacles and delays that can impact a contract award before it happens, or even after it happens! All of these barriers must be overcome to succeed.

The dreaded bid appeal

A scenario that I’ve seen happen to Canadian companies is the following:

You are jumping up and down because it has been announced that your company has been awarded a U.S. Government contract. A few days later you get the bad news that the award is being appealed by a competitor. What do you do?

You should fight it by hiring a U.S. lawyer who is experienced in this type of case. If you don’t know any, call the Trade Commissioner Service at the Canadian Embassy in Washington and ask them to connect you to a few lawyers who specialize in these appeals.

Once connected, you can discuss your situation with them and settle on the right lawyer for you, based on experience and price.

The Government Accountability Office (GAO) is an independent agency that works for the U.S. Congress. It has various functions, one of which is to adjudicate bid protests. If you search for “Canada” on the “Bid Protest Decisions” search engine, you will find Canadian companies that have gone through the bid protest experience.

The main hurdles you could face

Some of the obstacles that you may discover very quickly in attempting to win a U.S. government contract are:

1. The Buy American Act of 1933; (See Buy American and Defense Contracts)
2. Small Business Set-Asides, Small Business Act of 1953;
3. Buy America Act – Transit (not the same as Item 1.);
4. Buy America Act – Highways;
5. Buy American -Airports;
6. DFARS Part 225; and
7. DFARS Part 225.7002 Berry Amendment.

It is extremely important to understand the comprehensive list of barriers and helpful hints to address them, whenever possible, by using the resources of the Canadian Trade Commissioner Service.

Once at the site, note the “Other Key Information” box on the right hand side of the page. It is suggested that you review all the information contained under the specific headings. Actually, the whole page contains a wealth of important information you need to know.

Getting the help you need

Both buyers and sellers need help! The challenge is in connecting the right two organizations, so they can help each other. There are always obstacles or constant challenges, some big and some small, that must be overcome to succeed.

Regardless of where your company is located in Canada, help is available to you. Companies need opportunities, and financing and good networking will eventually get you the first two.

In Canada, we are fortunate to have local, regional and national associations in most industries, especially in the aerospace and defence fields. A list of some of these organizations is available on the Innovation, Science and Economic Development Canada web site. Also see WCDIA.

All of the associations have experience in dealing with the same obstacles you might be facing today; networking is key to getting help. Most likely, someone or some company has already experienced the same challenge you are now facing.

Canadian Trade Commissioners are your friends

Help is always available from the Canadian TCS. If you don’t know whom to contact first, try the Defence and Trade Sections at the Canadian Embassy in Washington.

They have direct contact with key DoD players who are always willing to listen and help if they can. A call from the Pentagon to a U.S. unit or base can certainly help to open doors for Canadian companies.

If you see an opportunity on FBO.gov, but the bid package is classified, it may be releasable to Canada.

Contact the Industrial Security Directorate to see how they can request it if you have the appropriate level of security clearance. Also, don’t be afraid to contact the Canadian manager at the Joint Certification Office if you are trying to visit a U.S. base and running into difficulty.

Remember, experience says that in dealing with U.S. Government organizations, if they want what you have, they will find a way to buy it!

Further Reading

Some interesting web sites that may be beneficial are:

1. General Services Administration (GSA schedules-another need to know-maybe)
2. Navy League of the United States (Large trade show)
3. Association of the United States Army (Large trade show)
4. U.S. Commercial Service Canada (Offices in Canada)
5. export.gov  (List of Canadian events U.S. companies are attending in Canada)

The post Overcoming the biggest hurdles in gaining export contracts with the U.S. Government appeared first on Trade Ready.

Mark Kilby, CITP|FIBP, is an experienced international business consultant and college professor.

Mark has a strong background in strategic planning, program management, lean operations, business development, stakeholder management, organizational development, and international marketing.

Throughout his career, Mark built a solid reputation as a collaborative team builder with extraordinary energy and an unyielding dedication to quality.

After spending more than 25 years in the aerospace and defence industry, Mark decided to channel his knowledge and experience into teaching, taking on an instructor role at Nova Scotia Community College (NSCC), where he teaches the FITTskills curriculum as well as some elective courses, such as Applied Entrepreneurship and Professional Selling.

He is also a sought-after business consultant with Lynwood Cameron Consulting, where he provides insight and guidance designed to help SME’s build capabilities and strengths in export readiness, strategic planning, and business development.

“At this point my typical day involves preparing for, and delivering to, a cadre of motivated college students who are preparing for a career in international business – in short I have fun every day.”

A harsh reality turned out to be a blessing in disguise

Mark’s career began in the financial services industry after graduating from Saint Mary’s University in Halifax, Nova Scotia in 1986 with a Bachelor of Commerce in Business Administration and Management.

At the time, his goal was to become an investment broker, but that was soon dashed when he was told by a number of senior investment managers that he was “too young”, and that people with money (mature adults) would never take financial advice from a 20 year old.”

Far from discouraged, Mark quickly changed course and took a position as a Subcontract Administrator in international sales. Thus began his career in international business. As Mark says,

I’ve done many things, earned credentials, and learned a great deal since then. I’m like a ‘Swiss Army Knife’ in the field of International Business.

After jumping into international sales, Mark worked his way up into more progressive senior management roles with some of Canada’s top aerospace companies where, alongside soaking up knowledge about Canada’s booming aerospace industry, he led several high-value, complex programs for a variety of international clients.

Taking the aerospace industry by storm

Prior to leaving industry, to pursue teaching and consulting, Mark held a number of senior positions in business development and operations management with companies such as General Dynamics, Bombardier, and IMP Group.

Most recently, Mark held the position of Senior Director for International Programs at IMP Aerospace, a role he moved into after successfully driving the group’s international marketing activities for several years.

Over the years I have been fortunate enough to work with major international OEM’s, RDA’s and industry partners that collaboratively created hundreds of millions of dollars in economic development opportunities for Atlantic Canadian companies.

“One of the highlights was an award winning aircraft life extension program that involved major structural upgrades on a number of Norwegian P-3 aircrafts. The program spanned over 7 years and resulted a 20 year extension in each aircrafts operational life.”

Passing on wisdom and joining the global trade elite

After successfully navigating 25 years in international trade, Mark decided to officially show his commitment and expertise to the industry by applying for his elite CITP®|FIBP® designation through the executive path in December, 2015.

“I am proud to carry the FITT banner – obviously I will continue to have a sustainable impact in promoting and developing much-needed skills and knowledge in the area of international trade and commerce as each new cadre of NSCC International Business students graduate into fulfilling and exciting careers in international business.”

I am especially looking forward to the opportunity to interact and collaborate within the growing FITT community.

Mark thoroughly enjoys engaging with students and imparting his extensive knowledge to tomorrow’s international business leaders, and sees the CITP®|FIBP® designation as a mark of leadership in the industry.

“As the future unfolds, I look forward to the opportunity to use my skills and knowledge to help others reach their goals. I am also looking for volunteer and related opportunities in the area of international development.”

Mark is passionate about continuing education and self-improvement. Besides earning his B.Comm, MBA and CITP®|FIBP® designation, he is currently completing his thesis for an MA in International Development. Mark is also a Lean Six Sigma Black Belt, (CSSB), Professional Logistician (PLog) and holds a Masters Certificate in Project Management (PMP).

With so much knowledge and professional experience in his arsenal, it’s no doubt that Mark is an ideal teacher and role model for the next generation of international business leaders.

The post Mark Kilby, CITP|FIBP – Principal Consultant and Professor appeared first on Trade Ready.

From what I have learned in my travels and dealings in the region, the growth strategy is three fold from a sectoral development standpoint:

1. Grow existing sectors
2. Build new sectors, new sub-sectors, and new functions and hubs
3. Move key sectors up the value chain

Apply your business’ expertise to foreign development plans

As Asia continues to develop, various jurisdictions may have gaps and deficiencies along the value chain that can be filled by a foreign solution.

Some of these jurisdictions may lack the knowledge, capabilities and advanced processes in order to move their economies forward. I believe Canadian companies can stand to benefit from these gaps and deficiencies by being part of the development process.

For example:

• China is building their aerospace, life sciences and clean-tech capabilities.
• India is moving up the value chain and transforming its Business Process Outsourcing (BPO) sector into Business Process Management (BPM).
• The Philippines is building a bustling Business Process Outsourcing (BPO) hub in Asia and has overtaken India as the call center capital of the world, due to its highly educated workforce that can speak fluent English.
• Singapore and Hong Kong aim to be Renminbi, international education, medical tourism, and cultural hubs of the world.
• Thailand and Malaysia continue to build infrastructures and eco-systems that are conducive for manufacturing.
• Vietnam is vying for low cost manufacturing as China begins shifting to high value manufacturing.
• And finally, Indonesia is focused on natural resource development and building its financial services, ICT, and aerospace capabilities.

I have found that the following three high-growth sectors in Asia possess a number of gaps and deficiencies, and thus opportunities for trade and investment.

Foreign companies can fill gaps in Asia’s finance and technology areas

I had the opportunity to work on a market assessment and lead generation project in early 2011 with a Southeast Asian financial center that was planning to enhance its regional standing.

When examining the jurisdiction’s Financial Services, clusters/sub-segments and its capabilities together with complementary and supplementary sectors, many gaps in the eco-system were found.

This jurisdiction had very limited venture capital and start-up financing to support its growing tech start-ups. Being a developing economy, this Southeast Asian financial capital lacked risk management and IT workflow capabilities.

Local companies could not provide the solutions, thus foreign companies with the right technologies and processes were needed to address the gaps.

This assessment project had many dimensions. But, for the purpose of this opinion piece, I will only focus on the gaps and deficiencies in functions and sectoral capabilities.

Figure 1 below shows a graphic representation of the process used in this project, which can also be used for other sectors.

Figure 1: Financial Services Sector and Sub-Sector Assessment

Energy and clean-technology

The development of Asia’s clean-tech sector and the limited depth and breadth of Asia’s energy mix are areas in which Canadians can play a strategic role.

The International Energy Agency’s 2013 World Energy Outlook report expects the energy demand in Southeast Asia to increase by more than 80 percent in 2035. The report also states that Southeast Asia will be the fourth largest oil importer after China, India and the European Union.

Based on my interactions with subject-matter-experts, key stakeholders that work in the energy sector, and the Asian Development Bank, there is a strong push to reduce the region’s dependence on imported oil, develop and grow its clean-tech sector, and diversify its energy mix.

The Canadian clean-tech sector is highly innovative and internationally oriented. Canadian clean-tech companies can stand to benefit by offering their products and services to jurisdictions that are developing clean-tech sectors as well as for those that have yet to start development.

Also, as the region’s appetite for energy grows, Canadian energy companies can benefit from this opportunity by building supply chains to Asia, and supplying energy products to the region.

Asian travel boom and Aerospace sector opportunities

Aerospace is another area where Canada can lend its expertise.

Personal and business travel is booming in the Asian region due to the lack of VISA restrictions, increasing disposable income and yearn to travel among the middle class, growth in regional trade, and the region’s geographic makeup of archipelagos and vast terrains.

During my last trip to Southeast Asia in 2013, I learned that Brunei, Malaysia, the Philippines (Manila Bay, Clark and Cebu) and Singapore are adding airport capacity and vying to become aerospace centers.

At present, I believe Singapore is ahead of the game due to the presence of the Seletar Aerospace Park—its two airports which act as airport hubs in the ASEAN bloc—and support from Singaporean government.

The travel boom in Asia coupled with the move by these Asian jurisdictions to become aerospace centers will potentially add new functions including maintenance, repair, and overhaul (MRO), re-fueling, flight training and simulation, parts manufacturing, and research and development (R&D).

Canada being a global key player in aerospace can stand to benefit from these developments by lending its capabilities and investment, and by supplying aerospace components and aircraft.

Tracing gaps and deficiencies along the value chain is a technique that has allowed me to find trade and investment opportunities in Asia.

As various Asian countries continue to develop their economies, I believe Canada can stand to benefit by taking part in the development process.

I hope this technique will add value to your market research, assessment, and expansion activities.

How is your company using similar techniques to seek opportunities for trade and investment? Share your comments below!

The post Tracing gaps and deficiencies along the value chain to uncover business opportunities in Asia appeared first on Trade Ready.